BEIJING - Intel Capital, the investment arm of US-based chip giant Intel Corp, said it may probably invest up to $100 million in China this year and hopes to quicken its expansion in the market by sealing at least 10 deals next year.

Since entering China in 1998, Intel Capital has invested in more than 100 Chinese enterprises, including Sohu.com Inc, Phoenix New Media Ltd and Shanghai Media Group. The total China investment has surpassed $650 million, according to Arvind Sodhani, president of Intel Capital and executive vice-president of Intel Corp.

"Most likely, China will maintain the position as the second-largest investment destination for Intel Capital next year, behind only the United States," said Sodhani, in an exclusive interview with China Daily on Thursday.

Intel Capital has invested in 10 Chinese enterprises this year, with a total investment of about $70 million. Sodhani said the company will invest approximately $500 million worldwide by Dec 31, of which 15 to 20 percent will be directed toward China.

"China is very critical in the global innovation industry. It owns a broad market and enjoys a high growth rate. Without China, the world's technology supply chain is not complete," he added.

As the investment arm of chip maker Intel Corp, Intel Capital holds a goal to achieve both strategic alignment with its parent company and a strong financial return for its investments. The company has dramatically expanded its non-US investing. International investing increased from less than 5 percent in 1998 to about 44 percent in 2010.

Intel Capital is likely to invest in up to 12 Chinese deals this year, while the targeted number of investments in China is set at 10 to 15 in 2012, according to Sodhani.

Though the global economy faces uncertainties, Sodhani said he is optimistic about the investment in the innovative technology industry.

"Technology continues to renew itself and has been the bright spot (in the global economy) with a lot of innovation taking place," he said. "People want to have exciting technology products - products which have the ability to help them get things done, or make life much more fun."

Sodhani said the shift to mobility is the major trend in the global technology industry. Therefore, every sector related to the mobile Internet could attract Intel Capital's attention.

Intel Capital has launched two China Technology Funds, one of $200 million in 2005 and the other of $500 million in 2008. Of the 100-plus Chinese companies Intel Capital has invested in, it has exited 19 enterprises through initial public offerings or mergers and acquisitions.

The company was rated as the No 7 foreign venture capital investor in 2010, out of 50 venture capital and private equity foreign investors that conduct business in China, according to Beijing-based research firm Zero2IPO Group.

Sequoia Capital China, IDG Capital Partners and SAIF Partners were listed as the top three. The annual China ranking judge is based on the combined score from several factors, such as return rate, size of fund and number of investment deals, Zero2IPO Group said.

China Daily